Cross-border payments remain a costly and opaque drain on travel industry margins, according to Atul Garg, CEO of Singapore-based fintech SingX. Speaking to Travelmao, Garg warned that travel firms—already operating on thin margins—are losing millions to hidden bank fees, foreign exchange charges, and manual payment processes.
“Travel companies operate to very low margins, and these margins get further compressed due to the high bank and FX charges, and some of these charges are often hidden,” Garg said. He cited a small travel company with US$10 million in turnover and a 10% margin, yielding about US$1 million in annual profit. Such a firm can pay as much as US$500,000 in bank fees. SingX, he claimed, can save at least half that amount—US$250,000—virtually increasing their profits by 50%.
The issue is particularly acute for travel aggregators collecting payments from markets such as Latin America, Africa, and Asia, where charges can reach 6% to 7%. Beyond FX costs, Garg noted that travel companies with entities in multiple markets often manage separate bank accounts, tokens, and manual processes across countries. This creates operational friction for travel agencies, online travel agencies (OTAs), aggregators, and destination management companies.
Fintech Solutions for Travel Payment Pain Points
Fintech firms like SingX, Wise, and Airwallex offer named bank accounts with multicurrency wallets, allowing travel companies to collect, hold, convert, and pay through one account. Garg emphasized that SingX differentiates itself by tailoring payment solutions to a travel company’s specific operations. “We try and understand a travel company's business, and we provide solutions, not products,” he said.
One Singapore-based travel aggregator needed to pay 5,000 hotels in the Philippines every month and send payment confirmations manually. SingX automated the confirmations so each supplier could receive a PDF once payment was made. The platform can also process up to 1,500 employee payments in one go, track supplier payments in real time using GPI trackers, and send payment confirmations such as MT103 directly to suppliers.
For travel firms, Garg said banking “does play a crucial role” because payment costs and manual work can reduce revenue that would otherwise flow back as profit. This is especially relevant as the industry faces broader margin pressures. For example, Southeast Asian hotel margins are squeezed by fuel costs and labor shortages, and Middle East airlines face a projected $4.3 billion loss in 2026 due to war, fuel costs, and lost transit traffic.
Garg’s warning comes as the travel industry increasingly digitizes payments but still relies on legacy banking infrastructure. For airlines, hotels, cruise lines, and tour operators, hidden fees can erode the profitability of international bookings. The key is to move beyond traditional banking relationships and adopt fintech platforms that offer transparency and automation.
Travelmao analysis suggests that as global travel rebounds, payment efficiency will become a competitive differentiator. Firms that fail to address these hidden costs may find their margins further compressed, while those that adopt fintech solutions could see significant bottom-line improvements.
